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SBA Loans/Grants for real estate investment

Hi, I'm trying to get some information or folks experience in trying to get a
loan from the SBU to start a property management company. Basically, I want
to get a capital loan from the SBA, combine with some savings I have and
purchase a number of multifamily housing units in order to generate monthly
income, incur expenses and hopefully become very profitable.
Does anyone have any information, links, advice or experiences on this type
of business and loan qualifications/application process?
Thanks in advance.

ver89ritu | Window Shopper |
2/4/2015 - 6:25 am

SBA does not offer loans to my knowledge. However I can suggest, since you
said, if I can have some loan and combining it with your own savings, you buy
a number of multi housing units or flats or apartments, I would suggest you
start off with little, buy less and rent them out, if necessary, take other
type of housing or property development loan from state level bank to get
through your target of achieving some regular source of output.

Gardel | Window Shopper |
9/18/2014 - 11:46 am

I haven’t head of a loan to buy/fix a property and to lease it but I know
there is the CAPLine Construction Loan to build/fix and then sell. If you are
in the property management business, why don’t you build it, sell the
property to an invertors and then manage the property for them at a certain
percentage of the monthly rent? Kind of double dipping if you will. My
thoughts. Good luck.

HorizonBusinessFunding | Window Shopper |
4/8/2014 - 3:07 pm

If you have enough savings to back a large enough percentage of the loan, you
will have a better shot, but in general getting capital to start up a
business is pretty difficult even with experience. You might be much better
off bootstrapping your start up rather than taking on a large amount of debt.

Greg Paulman | Window Shopper |
4/8/2014 - 12:47 am

As a property manager you are in an excellent position to develop
relationships with people who can do work on distressed properties. This is
important as many people who use management companies are either older and
don't want to deal with tenants or absentee owners. Many of these people will
look to dump properties when the become too expensive to keep up (this may
include their heirs). This puts you in a possition where you are buying a
property you are familier with and in the case of older people they may be
interested in carrying a second mortgage or sometimes even hold the whole
mortgage. There are some tax benefits for them in that it spreads (which are
less now then they were in the 80s and 90s) out gains into a monthly income
and if you can fix the properties and increase rent so you can pay them what
they were receiving (net after expenses and management fees) they see
themselves as better off as they no longer need to worry about vacancies. The
time you spend now will educate you in your market and what things you can do
vs having to hire someone. You really need to do as much of the work as you
can even if you are just painting. Finding suppliers of suitable materials
such as carpet, etc and inexpensive installation, etc. will help you as well.
It may take you several years before the right opportunities to present
themselves which is why most of the people you see that have built their own
real estate empire are not in their 20s and are usually 40+.

jreilly12278 | Window Shopper |
4/7/2014 - 10:01 pm

johnjacksonwood | Window Shopper |
7/6/2013 - 1:37 pm

I am almost in the exact same shoes as the aspiring real estate manager. I
just started a small real estate mgmt. company and I am looking to grow.
Specifically, I see the opportunity to start a lawn maintenance section of
the company but I would like to get a good zero radius turn mower and
trailer. I just need some inexpensive financing.

BizResearcher | Window Shopper |
4/8/2014 - 11:58 am

Show Replied Text…

I am almost in the exact same shoes as the aspiring real estate manager. I just started a small real estate mgmt. company and I am looking to grow. Specifically, I see the opportunity to start a lawn maintenance section of the company but I would like to get a good zero radius turn mower and trailer. I just need some inexpensive financing.

Have you looked into a micro loan? Your banker can provide information.

JGabriel | Community Moderator |
5/21/2013 - 1:58 pm

&nbsp;
SBA doesn&#39;t loan money directly to small business owners; instead, SBA can help facilitate a loan for you with a third party lender, guarantee a bond, or help you find venture capital. Here&#39;s what you need to know about SBA&#39;s role in the loan process.&nbsp;This blog&nbsp;can help advise you on how to find small business-friendly banks. Good luck!

BizResearcher | Window Shopper |
5/14/2013 - 12:57 pm

The SBA does not lend money. Rather, they guarantee loans made by banks. Your
best bet is to contact a community or state bank in your area (they are
usually more friendly to small businesses than national banks). You can find
the loan criteria for an SBA-guaranteed loan on this website by clicking on
the "Loans & Grants" tab at the top of this page.